What is a special needs trust and how does it work?

A special needs trust (SNT) is a type of estate planning tool used for individuals with disabilities in Idaho. It allows them to have access to funds without disqualifying them from government assistance programs like Social Security Disability Insurance (SSDI). The trust is set up by a person known as a “grantor” who is usually a parent or other family member. The grantor uses funds or property to create the SNT. The trust provides money and other items to the beneficiary, which is typically the disabled person. The trust is managed by a trustee who is responsible for paying for medical care and other needs of the beneficiary. The trustee can also use the funds in the trust to pay for education, recreational activities, or any other cost deemed necessary for the beneficiary’s well-being. The trustee must use the funds in the SNT only for the benefit of the beneficiary and not for the benefit of any other person or the grantor. When the beneficiary dies, any remaining funds in the trust pass to the grantor, who can use it as they wish. This way, the beneficiary can have access to the funds in the trust while also still maintaining SSDI eligibility. Special needs trusts provide invaluable peace of mind for families of individuals with disabilities in Idaho by allowing them to provide for their disabled loved ones without sacrificing government benefits.

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What is a special needs trust and how does it work?

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